Bona Fide Residence Test You meet the bona fide residence test if you are a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. Other than skiing tourists, life in Andorra is relatively quiet and easygoing. Any online, telephone mail-order, or traveling shopper who makes «tax free» purchases could be successfully prosecuted for evading state use taxes if he or she willfully fails to file the necessary return and pay the required tax, or intentionally omits the information from a required annual return. If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction. How to figure the month period. Tax treaties are bilateral two-way agreements made between two countries that help deal with the issue of double taxation of your income.